Савезна Република Југославија Savezna Republika Jugoslavija
| style="border: 0; vertical-align: middle;" |
| style="border: 0; vertical-align: middle;" |
| style="border: 0;" | Flag
| style="border: 0;" | ) was a federal state consisting of the republics of Serbia and Montenegro that existed from 1992 to 2003, when it was reconstituted as a looser State Union of Serbia and Montenegro.
The United Nations and many individual states, especially the United States, accepted it as constituting a state, but refused to recognise it as the successor of the former Yugoslavia. The FRY was also suspended from a number of international institutions. This was due to the ongoing Yugoslav wars during the 1990s, which had prevented agreement being reached on the disposition of federal assets and liabilities, particularly the national debt. The FRY was not directly involved in conflicts in Croatia and Bosnia, but helped the Serbian states of Republika Srpska and Republika Srpska Krajina with supplies, military technology and men. The country was ravaged by hyperinflation, which reached its peak in 1993, but the economy subsequently recovered. In 1995, FRY was one of the key parties which negotiated the end of war in Bosnia with the Dayton Agreement.
In June of 1999, after NATO airstrikes, NATO and other troops, organized into KFOR, entered the province of Kosovo following the Kosovo War. Before the handover of power, some 300,000 Serbs and other non-Albanians were ethnically cleansed from the province. On March 172004, unrest in Kosovo led to several deaths as Albanians clashed with Serbs and KFOR.
The FRY was finally re-admitted to the United Nations in 2000 after several years of suspension (with SFRY succession talks still ongoing).
In 2002, Serbia and Montenegro came to a new agreement regarding continued co-operation, which, among other changes, promised the end of the name Yugoslavia. On February 4, 2003, the federal parliament of Yugoslavia created a loose confederation - State Union of Serbia and Montenegro. A new Constitutional Charter was agreed to provide a framework for the governance of the country. The State Union had a parliament and an army in common, and during the three years (till 2006), neither Serbia nor Montenegro held a referendum on the break-up of the union. The EU's high representative for Common Foreign and Security PolicyJavier Solana said that he was happy with the agreement, because it stopped the disintegration progress in the former Yugoslav zone.
Political divisions
The FRY was composed of four principal political units, consisting of two republics and two subordinate autonomous provinces:
Mismanagement of the economy, an extended period of economic sanctions, and the damage to Yugoslavia's infrastructure and industry caused by the Kosovo War left the economy only half the size it was in 1990. Since the ousting of former Federal Yugoslav President Slobodan Milošević in October 2000, the Democratic Opposition of Serbia (DOS) coalition government has implemented stabilization measures and embarked on an aggressive market reform program. After renewing its membership in the International Monetary Fund in December 2000, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD).
The smaller republic of Montenegro severed its economy from federal control and from Serbia during the Milošević era. Since then, the two republics had separate central banks, different currencies - Montenegro adopted the euro, while Serbia used the Serbian dinar as official currency.
The complexity of the FRY's political relationships, slow progress in privatisation, and stagnation in the European economy were detrimental to the economy. Arrangements with the IMF, especially requirements for fiscal discipline, were an important element in policy formation. Severe unemployment was a key political economic problem. Corruption also presented a major problem, with a large black market and a high degree of criminal involvement in the formal economy.
